CLOUDPT: Strong Performance and Promising Outlook Driven by Strategic Growth Initiatives

Performance Review

Investment bank analysts have highlighted a robust financial performance for the nine months ended FY25, with core profit climbing 18% year-on-year to RM15.3 million. This outcome, representing 65% of the firm’s full-year expectations and 63% of consensus, was considered in line, primarily attributing the strong showing to a traditionally stronger second half for IT project execution, particularly within the financial industry.

The third quarter of FY25 witnessed a significant 69% year-on-year surge in revenue, reaching RM45 million from RM26 million in the prior period. This substantial growth was broad-based, fueled by strong contributions across all key segments, including enterprise and DC Networking (39%), cybersecurity (21%), digital applications & cloud services (16%), and IT services (24%). Notably, the digital applications and cloud services segment emerged as a star performer, with sales skyrocketing from RM1.7 million to RM7.2 million.

Profitability and Efficiency

Despite a slight contraction in gross margin, which slipped from 26.5% to 25.1% due to shifts in delivery schedules and project cycles, core profit for the quarter still expanded by 20% year-on-year, from RM4.1 million to RM4.9 million. This was achieved even as administrative costs doubled to RM3.7 million. The increase in administrative expenses was primarily attributed to one-off Main Market transfer fees (RM0.4 million) and the consolidation of Unique Central (UC) operating costs, including a significant increase in headcount and rental expenses, indicating effective cost management amidst growth.

Future Outlook and Strategic Growth

Management expresses strong confidence in a significant momentum pick-up in the final quarter. This positive outlook is primarily driven by increased capital expenditure from the financial sector and the implementation of a major technology refresh project. Unique Central (UC), a key subsidiary, has already surpassed its full-year profit guarantee of RM4.8 million and is anticipated to double its contribution in the fourth quarter, backed by a robust order book. The group is also proactively expanding its AI-driven solutions, specifically targeting the financial services industry with new product offerings such as fraud detection, data intelligence, AI chatbots, workload automation, and enhanced cybersecurity protection.

Analyst Rating

Public Investment Bank maintains its “Outperform” rating on the stock with an unchanged target price of RM1.22, based on 26x FY26 EPS. Additionally, a first interim dividend per share of 1 sen was declared for the quarter, further underscoring the positive financial health and shareholder return commitment.